How to Deal With Health Insurance as a Small Business Owner

The issue of health insurance can be a confusing and frustrating one for home-business owners. It may seem as if affording health insurance is an impossibility. However, health insurance is one expense that you really cannot afford to skip. If you are the primary source of income for your family, you must consider the ramifications of not having health insurance. Your family is counting on you. One serious accident or illness can lead to the loss of your business and your family’s income. The following article will help you prevent that from happening.

Difficulty: Moderate

Instructions

1. Decide if you want to purchase individual or group health insurance. Many insurance companies now offer group plans for a single business owner. Prerequisites to purchasing group health insurance will differ for each provider. Individual insurance plans will take your current health and any preexisting medical conditions into account when deciding whether or not to cover you.

2. Think about how much of a deductible you can afford. If you have some money in reserve, you may consider a larger deductible. Increasing your deductible from $100 to $2,000 can actually lower your payments by half.

3. Consider your health and the health of your family when deciding upon a deductible. A myriad of health care plans are available. They can range from HMOs to fee-for-service plans. Each plan has its own unique pros and cons.

4. If you really need to save money, it is possible to purchase a health-insurance plan that does not include doctor’s appointment, hospital visits or medical tests. This type of coverage is called catastrophic coverage.

5. Think about joining a group of other home-business owners to give you more leverage to ask for better rates. Research any trade or professional associations that you qualify for. Many of these associations offer ways to join groups for health-insurance coverage.

6. Look for health-care plans that are geared toward small businesses. These plans are specifically tailored to meet small-business needs. You may be able to find plans that have special premiums and offers.

Tips & Warnings

• Group plans cannot refuse coverage based on existing medical problems.
• College alumni associations can be a resource when looking for group coverage. You can also contact your local Small Business Development Center or a similar organization for advice, and for help in finding groups to join for insurance-coverage purposes.
• Be sure you have done your research and gotten all of your questions answered before selecting a plan.
• Keep in mind that catastrophic coverage is health insurance that will only cover major accidents.

Resources

• Small Business Health Insurance Overview